Metallica Signs Option Agreement For Rio Figueroa Project

TORONTO, ON - Metallica Resources Inc. reported that its wholly owned subsidiary Minera Metallica Resources Chile Ltda. (Metallica) has entered into an agreement with Antofagasta Minerals S.A. (Antofagasta), a Chilean company and wholly owned subsidiary of Antofagasta PLC, whereby Antofagasta has the option to earn up to a 70% interest in Metallica's Rio Figueroa copper-gold project in Chile. The Rio Figueroa project is currently 100% owned by Metallica and is located approximately 125 kilometers northeast of Metallica's 30% owned El Morro project.
The agreement provides Antofagasta with the right to earn an initial 30% interest in the project by making a US$50,000 cash payment to Metallica upon signing and a firm commitment for cash purchase payments to Metallica totaling US$2.6 million by September 2, 2009. Metallica will in turn use the $2.6 million in cash payments to complete its option to purchase a 100% interest in the project from SCM Los Potrillos, an underlying property owner controlled by the Chilean National Mining Company (ENAMI). Upon completion of its option to earn a 30% interest, the project will be operated under a joint venture shareholder's agreement between the companies. Antofagasta also has the option to earn an additional 20% interest in the project by completing US$7 million in exploration expenditures by June 5, 2012, two-thirds of which must be directed specifically toward exploration drilling activities which are to commence by June 5, 2009.
The company's  address is Suite 165, 12200 E. Briarwood Ave., Centennial, CO 80112, (303) 796-0229, fax: (303) 796-0265.